China's Chery Automobile to price shares at top of range in Hong Kong IPO, sources say

China's Chery Automobile is planning to price its shares at HK$30.75 ($3.96) each to raise $1.2 billion in a Hong Kong initial public offering, two sources with direct knowledge of the matter said on Monday.

The company last week started a bookbuild to sell 297.4 million shares in a price range of HK$27.75 to HK$30.75 each, according to its regulatory filings.

Chery did not immediately respond to a request for comment from Reuters.

The deal was to have been the largest IPO in Hong Kong this year, but was eclipsed when Zijin Gold International launched its deal last week to raise $3.2 billion.

Chery, best known for its Chery, Jetour and iCAR brands, is seeking to tap investor appetite as it expands in the competitive electric and smart vehicle market.

Chery shares are due to start trading on the Hong Kong Stock Exchange on Thursday.

($1 = 7.7680 Hong Kong dollars)